As a relatively new investment management software provider, we’re often asked by prospective clients about the pros and cons of choosing Limina over an established buy-side oms vendor. In this post, we’ll cover specifically the reasons related to vendor size, i.e. the pros and cons of choosing a large buy-side software vendor vs a small vendor respectively.
We discuss the pros and cons of choosing a new vs old vendor
Many aspects of a system selection process are unrelated to the size of the vendor. In this post, we only talk about the size-related considerations.
An emerging buy-side software vendor is very likely to have the following benefits:
Also called Software-as-a-Service (SaaS), if founded around 2005 or later. If founded around 2014 or later, they might have an Enterprise SaaS, which pairs the functionality required for running a large business with the ease of a cloud-based investment management platform.
This means the vendor will be able to deliver new functionality fast – now and in the future. However, technology decisions, such as building on microservices, usually mean a slower time to market at first. So, it’s not obvious that an emerging buy-side vendor is building the technology “right” from the start – we urge you to check this in your due diligence of a potential vendor.
Since they have fewer clients, you are more likely to be given a lot of attention, i.e. you are likely to be a big fish in a small pond. Your input on product direction will be considered.
Note: Limina takes this further to a partnership approach
Having a modern UX and UI for asset managers means it is intuitive to use and enables holistic end-to-end investment and operations workflows, as well as access from anywhere via mobile, browser and tablets.
An emerging buy-side software vendor might:
A legacy buy-side software vendor is likely to have the following benefits:
After many years of development, the vendor is likely to have built a sophisticated set of features and functionality. However, they might still struggle to deliver next-generation capabilities, such as generation 3 IBOR.
With an established buy-side software vendor, there is peace of mind offered by their survival in the market and this is reassuring from a financial stability perspective.
Years in the market equates to a period of software being battle-tested, improved and optimised. Those still standing should be robust, which builds trust.
More testimonials, case studies and success stories can reassure you about the quality of the solution.
A legacy buy-side software vendor might:
We hope that this article has been useful in helping you to figure out the considerations to keep in mind when choosing between an emerging vs established buy-side software vendor.
As a general piece of advice, we recommend investigating the ownership structure and source of capital of any vendor. Is it coming from a long-term investor? Does the vendor have any conflict of interest or direct/indirect affiliation with other industry participants, such as being owned (partly or entirely) by a competitive firm?
If you have questions or would like to know more about when our investment portfolio management software will be a great fit for your company, read our recent blog, or contact us to discover how Limina can help your firm achieve your goals.